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By: Aquib Nawab
Finance
One of the best ways to show lenders you are creditworthy is to pay at least the minimum amount due every month by the due date. On-time payments demonstrate you are organized and responsible with credit. Set up autopay or calendar reminders to help make on-time payments.
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Try to keep your credit card balances well under 30% of your credit limit. High balances can make lenders worry you are overextending your credit. Keep balances as low as possible to look financially stable. Pay more than the minimum when you can to lower balances.
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An easy way to get considered for a higher limit is to provide proof of increased income with a recent pay stub or tax return. Lenders want to see you can afford more credit, so show them your earning power has grown. Ask your employer for a new pay stub or access your latest tax return.
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Having a credit score over 700 will make lenders much more likely to increase your limit. Pay all bills on time, lower your debt, and limit credit inquiries to boost your score. The higher it is, the better your chances. Use free credit monitoring services to check your scores.
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After responsibly using a card for 6-12 months, directly contact the issuer and request a credit limit increase. Politely explain why you need more. If denied, you can request again in 3-6 months. Call or send a secure message through your account.
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Opt in for any automatic credit limit increases your card issuer provides over time for on-time payments and responsible usage. These "passive" increases come with no credit check. Look for opt-in offers in your statements or account settings.
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Each new credit card you open will add to your overall available credit, and applying for new accounts also shows lenders you want more credit extended. Just avoid opening too many cards at once. Research top rewards cards and pre-qualify before applying.
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You may be able to get a higher limit by offering something of value, like a certificate of deposit or savings account, to secure the account. This lowers the lender's risk and makes them more likely to approve more credit. Ask your bank about deposit secured credit cards.
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Asking a friend or family member with excellent credit to co-sign for you can allow access to a higher limit. Just make sure you can handle the credit, because their credit will also be impacted. Have your co-signer request to be added to your account.
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If you have maxed out cards, transferring balances to a new 0% introductory offer card can free up credit on the old ones, which may convince the issuer to grant a higher limit. Compare balance transfer cards to find the best terms.